Here is a letter I recieved in the mail yesterday from my home onwers insurance company.

Why is my policy being amended to remove earthquake coverage ?

The peril of earthquake represents a potential catatrophic loss for our company and requires large amounts of additional coverage to be purched in the event an earthquake occurs. The market for this additional coverage has narrowed to the point we no longer able to purchase coverage at acceptable levels in pricing. With our current earthquake expiring on 12/31/2012 and no alternative solution, this left no option but to remove earthquake from our policy coverage.

They had no problem taking my money for the last 18 years..... Do they know somethging we dont ?

About five years ago, my insurance company sent me a similar notice, but it involved flooding. I live at the NJ Shore, and the letter stated that they would no longer insure anyone within 50 miles of the coastline. I got other insurance, at a higher rate of course, and within a year they did the same thing.

Yeah, they know.

"When tyrants tremble in their fear, and hear their death knell ringing,When friends rejoice both far and near, how can I keep from singing"

About five years ago, my insurance company sent me a similar notice, but it involved flooding. I live at the NJ Shore, and the letter stated that they would no longer insure anyone within 50 miles of the coastline. I got other insurance, at a higher rate of course, and within a year they did the same thing.

Yeah, they know.

Quoting: INK3

So I guess now nobody will be able to buy or sell a house within 50 miles of the coast, because they won't be able to get insurance.

About five years ago, my insurance company sent me a similar notice, but it involved flooding. I live at the NJ Shore, and the letter stated that they would no longer insure anyone within 50 miles of the coastline. I got other insurance, at a higher rate of course, and within a year they did the same thing.

Yeah, they know.

Quoting: INK3

So I guess now nobody will be able to buy or sell a house within 50 miles of the coast, because they won't be able to get insurance.

Nice.

Quoting: Anonymous Coward 29577198

Who knows? They've made it very expensive, but since ironically, I don't live in an actual flood zone, I can't get Fema flood insurance. Yeah, nice.

"When tyrants tremble in their fear, and hear their death knell ringing,When friends rejoice both far and near, how can I keep from singing"

I am surprised that they did'nt just raise the price for earthqake insurance. But it sounds like to me. That no insurance company is going to cover the people in the mid-west. I would love to hear from anyone else in missouri if this has happened to them. Hopefully there is some insurance company that will cover us. I wonder how my mortgage compant feels about this ?

When insurance companies feel that an element of their policy presents extreme risk they go to what are known as re-insurers. Those are specific companies that provide them with backup insurance to save them harmless in case their is an event of that type. What they are saying here is that there seems to be a real lack of anybody who wishes to provide such backup at all but huge rates which they will not pay. Thus, they take themselves out of insuring against that hazzard.

Here is a letter I recieved in the mail yesterday from my home onwers insurance company.

Why is my policy being amended to remove earthquake coverage ?

The peril of earthquake represents a potential catatrophic loss for our company and requires large amounts of additional coverage to be purched in the event an earthquake occurs. The market for this additional coverage has narrowed to the point we no longer able to purchase coverage at acceptable levels in pricing. With our current earthquake expiring on 12/31/2012 and no alternative solution, this left no option but to remove earthquake from our policy coverage.

They had no problem taking my money for the last 18 years..... Do they know somethging we dont ?

Quoting: Anonymous Coward 1152043

Because they know the numbers, quakes are increasing in size and strength. Furthermore, they know the planet shaker is coming.

(GLP aka American Jedi)

Listen here you beautiful bitch, I'm about to fuck you up with some truth.Kenny Powers

If you steal the dreams of others long enough, sooner or later you'll end up in a nightmare.American Jedi

When insurance companies feel that an element of their policy presents extreme risk they go to what are known as re-insurers. Those are specific companies that provide them with backup insurance to save them harmless in case their is an event of that type. What they are saying here is that there seems to be a real lack of anybody who wishes to provide such backup at all but huge rates which they will not pay. Thus, they take themselves out of insuring against that hazzard.

Quoting: ANNONYMOUS 8415236

Yes...but! You have to look at who does the re-insuring. Some of the big players are owned or mostly owned by TPTB....Berkshire Hathaway (Warren Buffet is a big owner) owns Gen Re as in General Reinsurance. That info known...it does make one wonder.

An actuary playing with numbers and the odds of a new madrid EQ...not necessarily the BIG ONE. Insurance companies are not set up to pay out, they are in business to make money.

Quoting: Anonymous Coward 29621129

Then what's the use in having insurance?

Quoting: Renegade (Me too)

There's really not much, most of the time. It's all run on risk pools and betting that they won't have to pay out more than they take in from/to a person. AFAIK, it's set (with health insurance, at least) as 80/100 of the dollars you put in go to pay for medical coverage for you, if everything goes 'right', of course. Meaning, really, that they expect to make $20 and pay $80 out of ever $100 paid to them. So... you tell me. I would say its 'use' is in paying other people to worry about the foolish and risky things you do, because you don't feel like it. Since it certainly doesn't -prevent- anything.

When insurance companies feel that an element of their policy presents extreme risk they go to what are known as re-insurers. Those are specific companies that provide them with backup insurance to save them harmless in case their is an event of that type. What they are saying here is that there seems to be a real lack of anybody who wishes to provide such backup at all but huge rates which they will not pay. Thus, they take themselves out of insuring against that hazzard.

Quoting: ANNONYMOUS 8415236

Warren Buffet's "Berkshire Hathaway" is one of the biggest (if not THE biggest) re-insurer in the U.S.

When insurance companies feel that an element of their policy presents extreme risk they go to what are known as re-insurers. Those are specific companies that provide them with backup insurance to save them harmless in case their is an event of that type. What they are saying here is that there seems to be a real lack of anybody who wishes to provide such backup at all but huge rates which they will not pay. Thus, they take themselves out of insuring against that hazzard.

Quoting: ANNONYMOUS 8415236

Warren Buffet's "Berkshire Hathaway" is one of the biggest (if not THE biggest) re-insurer in the U.S.

When insurance companies feel that an element of their policy presents extreme risk they go to what are known as re-insurers. Those are specific companies that provide them with backup insurance to save them harmless in case their is an event of that type. What they are saying here is that there seems to be a real lack of anybody who wishes to provide such backup at all but huge rates which they will not pay. Thus, they take themselves out of insuring against that hazzard.

Quoting: ANNONYMOUS 8415236

Warren Buffet's "Berkshire Hathaway" is one of the biggest (if not THE biggest) re-insurer in the U.S.

Here is a letter I recieved in the mail yesterday from my home onwers insurance company.

Why is my policy being amended to remove earthquake coverage ?

The peril of earthquake represents a potential catatrophic loss for our company and requires large amounts of additional coverage to be purched in the event an earthquake occurs. The market for this additional coverage has narrowed to the point we no longer able to purchase coverage at acceptable levels in pricing. With our current earthquake expiring on 12/31/2012 and no alternative solution, this left no option but to remove earthquake from our policy coverage.

They had no problem taking my money for the last 18 years..... Do they know somethging we dont ?

Quoting: Anonymous Coward 1152043

I worked in the insurance world for 6 years (Underwritting). Typically they never remove coverages unless a particular peril has become a major problem for them. So its usually after a problem...not before.

I'd say they are thinking ahead, so where did they get the idea that there will be EQ troubles?